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Temka [501]
1 year ago
8

It will take Cody 3 months to save up enough money to purchase a stereo. He has a credit card with a 12% interest rate. Cody’s f

riend Mark says it will cost Cody less money if he saves for 3 months instead of using the credit card. Is Mark correct? Mark is correct.
If Cody uses the credit card, he will have to pay interest during each month in which he does not pay off the balance of the card. If he saves money, he will not have to pay interest.
Business
2 answers:
guapka [62]1 year ago
4 0

ANSWER: Mark is correct

EXPLANATION: Mark's idea was to save Cody from paying interest if he swipes his credit card and his idea to save money for 3 months was correct. Cody needs to save money for 3 months to save money enough for the stereo. If he swipes the credit card, he will have to pay interest for 3 months or as long as he saves up enough money to repay the credit card bill. So, if avoid the interest payment, it is a safer idea for Cody to save money for 3 months and then buy the stereo.

lukranit [14]1 year ago
3 0
I would agree that Cody ideally would save up enough money to pay for the stereo to avoid interest charges on the credit card ie to avoid the 12% interest. But the only thing is, that he may charge the credit card for convenience of paying as long as he pays the balance all off before the end of the month, then he also will pay no interest. 
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